Pillar 3a: Why the Classic Savings Account Is Outdated
Those who only rely on the classic interest account in pillar 3a are giving away real money in the long run. Learn why return-oriented retirement saving is crucial.
The Inflation Trap in Private Pensions
Many Swiss dutifully pay into their pillar 3a but leave the money in a low-interest account. In the long run, inflation often completely eats up these meager interest returns. Those who don't actively manage their pension capital lose massive purchasing power over the years and miss valuable return opportunities for retirement.
Staggered withdrawal: Open multiple 3a accounts (ideally 3 to 5). This allows you to withdraw capital over several years in retirement, effectively breaking tax progression.
Securities Solutions: A Turbo Effect for Your Pension
With securities in pillar 3a, you benefit optimally from the compound interest effect.
- Significantly higher long-term return opportunities than pure account savings.
- Tax-free reinvestment of all income and dividends.
- High flexibility in choosing an investment strategy.
Checklist: The Quick 3a Check-up
- Has the maximum amount for the current year already been paid in?
- Have you checked the switch to a securities solution?
- Are multiple 3a accounts already available for staggered withdrawal?
Conclusion
A well-structured pillar 3a protects your assets from inflation, uses return opportunities and saves you taxes every year – a true win-win situation.
Frequently Asked Questions
3 answers about this topic
In the short term, financial markets are subject to fluctuations. However, since capital in pillar 3a is usually invested over many years or even decades, this risk historically evens out significantly. You also determine the equity ratio and thus your personal risk-return profile yourself.
Yes, a switch is generally possible. Your existing pension assets are transferred from your previous interest account to the new securities account and invested according to your chosen investment strategy.
No. During the entire savings period, neither capital gains nor dividends in pillar 3a are subject to income or wealth taxes. You benefit 100% from the compound interest effect. Only upon payout is a one-time, reduced capital withdrawal tax due.
Author
Adis Kavazovic
Head of Insurance & Financial Planning
Personal Consultation
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